This contribution reports on a software framework that uses physically-based rendering to simulate camera operation in lunar conditions. The focus is on generating synthetic images qualitatively similar to those produced by an actual camera operating on a vehicle traversing and/or actively interacting with lunar terrain, e.g., for construction operations. The highlights of this simulator are its ability to capture (i) light transport in lunar conditions and (ii) artifacts related to the vehicle-terrain interaction, which might include dust formation and transport. The simulation infrastructure is built within an in-house developed physics engine called Chrono, which simulates the dynamics of the deformable terrain-vehicle interaction, as well as fallout of this interaction. The Chrono::Sensor camera model draws on ray tracing and Hapke Photometric Functions. We analyze the performance of the simulator using two virtual experiments featuring digital twins of NASA's VIPER rover navigating a lunar environment, and of the NASA's RASSOR excavator engaged into a digging operation. The sensor simulation solution presented can be used for the design and testing of perception algorithms, or as a component of in-silico experiments that pertain to large lunar operations, e.g., traversability, construction tasks.